Caroline Chen, Senior Vice President, gave Bloomberg her take on why fixed income investors should remain cautious about their allocations towards mortgage bonds without U.S. government guarantees. Non-QM RMBS late payment rates have soared upwards of 35% as forbearance requests from Americans struggling financially through the coronavirus crisis spiked. Caroline explained why the non-QM RMBS market is tricky evaluate, given that lenders’ methods of measuring delinquencies can vary drastically.
Bloomberg: Murky’ Mortgage Bonds See Late-Pays Soar
July 24, 2020
Original article by Adam Tempkin